Mumbai: : The Reserve Bank of India (RBI) today reduced the reverse repo rate by 25 basis points from four per cent to 3.75 per cent in a bid to inject liquidity in financial markets. However, the repo rate remains unchanged.
This comes amid the COVID-19 pandemic and the subsequent countrywide lockdown.
RBI Governor Shaktikanta Das said the liquidity injection has been 3.2 per cent of GDP since February 6 to March 27.
“The RBI has been taking pro-active measures and monitoring the situation closely. The contraction in exports at 34.6 per cent has been much worse than 2008-09 global financial crisis,” Das said.
He said that India is expected to post a “sharp turnaround” by growing at 7.4 per cent in 2020-21.
“For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround and resume its pre-COVID, pre-slowdown trajectory by growing at 7.4 per cent in 2020-21,” the RBI Governor said.
